Car Dealers Urged to Focus on Used Car Sales

A top auto trade accountancy firm has urged used car dealers to look again at their sales and servicing procedures and give them a tune-up before new car sales take the expected hit in the wake of the end of the government's scrappage scheme.

ASE chairman Trevor Jones said that there was a danger that some car dealers may have placed too much emphasis on selling new cars in the first quarter of 2010 ' and this may have left sales of their used cars at a disadvantage.

Addressing delegates at the Motor Trader and ASE Financial Conference last week, the company's founder warned that "sales processes have gone to pot in some cases."

He added: "Used car sales were down, due to scrappage, and labour sales have dropped which is worrying."

Mr Jones insisted that he was nevertheless confident that the plate-change figures which are released on 7 May would be god, but stressed that figures for the previous month were "looking slow." He advised the financial heads of car dealerships to keep their processes and budgets under close scrutiny over the rest of the year, because the sector was just starting to come out of recession and it was important not to jeopardise that.

He told the conference: "Cost control has to be managed on a daily basis. Over the last six months the cost control on used car stock went down the pan. The trouble is if you're making money out of new sales then everything else goes to pot. The control of used cars has to be watertight. It's your responsibility to look after the money."

 

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